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José M.
José M., Attorney
Category: Spain Law
Satisfied Customers: 319
Experience:  Spanish Attorney
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My sister is due to inherit around £80,000 which represents

Customer Question

My sister is due to inherit around £80,000 which represents her quarter share of my mother's estate. She is normally resident in Spain where she works and owns a property. There is some possibility that the estate will attract some small level of British IHT which will of course be dealt with if due. The question is about whether or not my sister will have further liability on her share through Spanish taxation.
Submitted: 3 years ago.
Category: Spain Law
Expert:  José M. replied 3 years ago.

José M. :

Hi there

José M. :

José M spanish attorney

José M. :

As long as she resides and own a propiety in Spain she mus to declare the incomes

José M. :

But it does not really means she will have to pay

José M. :

She must declare and deduce the taxes paid in UK

José M. :

I have no idea the taxes she will have to pay in UK but I could tell about the sum due to pay in Spain if she does not declare anything in UK

José M. :

In order to know the sum due to pay in Spain I need to know the place where she resides

José M. :

In all cases the taxes paid in Uk are deductibles in Spain

JACUSTOMER-308xper8- :

She lives in Madrid. We're not concerned about what's due in taxation In Britain as we know these already. (40% inheritance tax on all estate values over £325,000)

José M. :

Well, Madrid is the better places to pay this tax because there she has 99 per cent of the tax so as long as she pays 40 per cent in Uk she will have to declare but she will have to pay nothing

José M. :

If she does not pay anything in UK she only has to pay 1 per cent in Madrid

JACUSTOMER-308xper8- :

We will only pay 40% on anything above £325,250. So if her share is £82,250 for example the tax will have been £400

José M. :

In Spain she has not to pay 40 per cent

José M. :

In Madrid she could pay just one per cent

José M. :

If she pays 40 per cent in UK, this sum is deductible in Spain, so, In Madrid she has to pay nothing

JACUSTOMER-308xper8- :

Can you confirm that you have understood that it is not 40% on the entire inheritance but only anything above the threshold of £325,00 for the estate. So £82,250 at 1% is £822. In Britain, her portion taken out of the estate would be £400 but it is the estate and not the individual who pays. I have rated this poor because I am not yet satisfied that I have a full answer. Would she be liable in this instance for the difference in Spain of £422 (or Euro equivalent) or as the individual does not pay the full 1%?

José M. :

In Spain she has to pay 1 per cent of the total sum she gets. Its not matter how was the inheritage sum. If she recibes 82.250 pounds she will have to pay just 822

JACUSTOMER-308xper8- :

If you ever need an interpreter/translator with legal secretarial and translation experience in Spain backed up with UN qualifications you really could get in touch with me and I will forward you my sister's details

José M. :

OK

José M. :

I will be here if needed

José M. :

Thank you

José M. :

I will be here if needed, thank you

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